Liberty University ECON 213 Quiz 6 2 out of 2 points Let’s say that you have a friend who was caught illegally buying a good on the black market. When the judge asks you to describe your friend’s motivation as a buyer, which of the following would most likely be your reply? 2 out of 2 points How would an economist explain a teenager’s continued unemployment where there exists a minimum wage? 2 out of 2 points If the local government tells gas stations that they are not allowed to change the price of gas for three weeks during hurricane season, what will be the consequence? 0 out of 2 points Use the following table to answer the questions that follow. What is the quantity demanded when the price floor is $0.75 in the market for public transportation? 0 out of 2 points If a store sells a good at the market price, even though the government authorities have set the minimum price that can be charged, the store is selling the good in a(n): 2 out of 2 points Do all buyers benefit from a binding price ceiling? 2 out of 2 points Refer to the accompanying figure to answer the questions that follow. The market is currently at market equilibrium. If a binding price ceiling of P1 is imposed, by how m
uch would the quantity supplied change? 2 out of 2 points Why is it often difficult to remove a binding price floor after it exists? 0 out of 2 points A nonbinding price floor has the following consequences: 2 out of 2 points Do all sellers benefit from a binding price floor? 2 out of 2 points The government has imposed a price control for many agricultural products in an effort to support farmers. In the case of price floor P2 in the accompanying figure, how much of a disequilibrium in quantity exists? 2 out of 2 points You are a senator from Kansas who wants to help farmers. You have worked to encourage the passage of a law that would impose a binding price floor on wheat. What would you expect your critics to say? 0 out of 2 points Use the following figure to answer the questions that follow. The accompanying figure describes the market for gasoline in a local community. If the government were to place a price floor at P1, predict the resulting surplus or shortage. 2 out of 2 points How do producers who are subject to a binding price ceiling respond as the time frame shifts from the short run to the long run? 2 out of 2 points Setting a price ceiling below the equilibrium price can result in: